Guaranteed Issue vs Simplified Issue Life Insurance

Life insurance with no medical exam has gained a lot of popularity lately because it offers a convenient way to acquire life insurance coverage.

No medical exam policies do exactly what the name says, and that’s let you acquire a life insurance policy without having to take the medical exam that is required with traditional policies.

Many companies are jumping on board the no exam train, but with many companies comes many products, and with that comes much confusion.

Overall no medical exam life insurance comes in two forms: simplified issue and guaranteed issue.

Simplified Issue vs. Guaranteed Issue

As far as who should apply for which is fairly simple.

If you are in good health and are just trying to avoid the hassle of the exam, then a simplified issue is for you.

However, if you are all out of options and need a final expense policy in place, then a guaranteed issue policy is your only choice outside of accidental coverage.

Discuss this with an independent life insurance agent to weigh all your options with a professional.

Let’s discuss more of the differences here.

Simplified Issue

This is the more popular of the two because it’s the closest thing to getting traditional life insurance products without having to take the medical exam.

It comes with its upsides and a few downsides, so let’s get into the details of what simplified issue is all about.

Fast Coverage

One of the best things about simplified issue no exam life insurance policy is that you can get coverage fast. In most cases, you can get covered in a few hours to a few days.

This is much faster than the traditional 6 to 8-week process. How fast you get approved will depend on the company you apply with and if there are any question marks on your records.

Most companies can approve you within 48 hours while some can take up to 30 days.

Underwriting

Many think that because there is no exam there is no underwriting. However, with a simplified issue, there is still a look into your records.

The life insurance company will look into your electronic medical records, driving history, and background history. If there isn’t anything out of the ordinary you will get approved.

Simplified issue is for the low risk client. If you’re healthy overall, it may be a good option for you.

Coverage Amount

With a traditional life insurance policy, you can get any amount of coverage that is reasonable for your income and expenses.

However, with simplified issue no exam life insurance companies, it is not the case. Because the life insurance company is taking on a bigger risk by not administering the exam, the coverage amounts are capped.